Search
Info
Warning
Danger

Study Resources (Accounting)

1) In the Current Model, investment earnings are taxed currently. 2) In the Deferred Model, investment earnings are taxed at the end of the investment period. 3) In the Exempt Model, the earnings are exempt from tax until the end of the investment period. 4) In the Pension Model, the initial investment is.
5 Views
View Answer
71) Dozen Corporation is owned equally by twelve unrelated individuals. Its taxable income this year is $100,000 and its regular federal income tax liability is $22,250. The company claims a $20,000 dividends-received deduction and pays $25,000 dividends to its shareholders. The corporation had accumulated earnings and profits of $900,000 at.
0 Views
View Answer
112) Johnson Corporation has $300,000 of AMTI before the exemption. What is the tax base for AMT? 113) In the current year, Bosc Corporation has taxable income of $100,000, and its regular tax liability is $22,250. Bartlett's AMT adjustments other than ACE are $70,000, and it has $320,000 of adjusted current.
0 Views
View Answer
97) Sam and Megan are married with two dependent children.  Both Sam and Megan work, earning $50,000 and $55,000, respectively.  Their AGI totals $110,000.  They incur $6,500 of qualifying child care expenses of which $2,500 is reimbursed by Megan's dependent care program at work. What is the amount of their child.
0 Views
View Answer
11) When a taxpayer contacts a tax advisor requesting advice as to the most advantageous way to dispose of a stock, the tax advisor is faced with A) a restricted-fact situation. B) a closed-fact situation. C) an open-fact situation. D) a recognized-fact situation. 12) Investigation of a tax problem that involves a closed-fact situation means.
0 Views
View Answer
112) Discuss the differences and similarities between regular and memorandum decisions issued by the U.S. Tax Court. 113) Assume that the Tax Court decided an expenditure in question was deductible. The government appealed to the Fifth Circuit, which reversed the decision and held it was not deductible. No other circuits have.
0 Views
View Answer
41) Passive activity loss limitations apply to S corporation shareholders in the same manner as partners. 42) Gain is recognized by an S corporation when it distributes appreciated property to its shareholders. 43) An S corporation recognizes gain or loss if it distributes property other than money to its shareholders. 44) The corporate.
0 Views
View Answer
21) A partnership's liabilities have increased by year-end.  Partners' bases in their partnership interests will increase. 22) Ordinary losses and separately stated deduction and loss items that exceed a partner's basis carry over indefinitely until the partner has a positive partnership basis. 23) Losses are disallowed on sales or exchanges between a.
0 Views
View Answer
21) Identify which of the following statements is true. A) Paragraph references are most commonly used when citing or referring to the tax statutes. B) Title 26 of the United States Code and the Internal Revenue Code of 1986 are synonymous. C) Before 1939, tax statutes were codified or compiled into one document. D).
0 Views
View Answer
89) Are letter rulings of precedential value to third parties? 90) What is the difference between a taxpayer-requested letter ruling and a technical advice memorandum issued as a letter ruling? 91) What is an information release? 92) What are some of the factors to consider when deciding in which court to file a.
0 Views
View Answer
109) Oak Corporation manufactures widgets in its factory in Houma, Louisiana.  Its taxable income (before the production deduction) is $200,000 and its net income from qualified production activities is $180,000. What is the amount of Oak Corporation's qualified production activities deduction? 110) Sycamore Corporation's financial statements show the following items for.
0 Views
View Answer
21) The corporate AMT is similar to that applicable to individuals. 22) By calculating its depreciation using the most accelerated method available, a corporation increases the likelihood that it will be subject to the alternative minimum tax. 23) The purpose of the accumulated earnings tax is to discourage corporations from retaining excessive.
0 Views
View Answer
1) Income of a C corporation is subject to an initial tax at the corporate level and the shareholders are subject to a second tax if the corporation pays dividends from its earnings and profits. 2) Partnerships, limited liability partnerships, limited liability companies, and C corporations are considered flow-through entities for.
3 Views
View Answer
99) Charlie Company is a partnership with two owners, Charlie and Robert. Each owner has a $20,000 original basis in the entity having contributed cash to the partnership at its formation. In the first year of operations, the partnership reported $50,000 of income which is allocated to each partner equally..
0 Views
View Answer
103) During the year, Jim incurs $50,000 of rehabilitation expenditures in connection with a certified historic structure used in his business. The adjusted basis of the structure was $40,000 at the time the rehabilitation began. a.What is the amount, if any, of his rehabilitation credit for the year? b.What is the depreciable.
0 Views
View Answer
11) If a corporation owns less than 20% of the stock of the distributing corporation, the dividends-received deduction is not allowed for the recipient corporation. 12) If a corporation receives dividends from an 80% or more owned affiliated corporation, the dividends-received deduction is 100%. 13) In computing a corporation's NOL, the dividends-received.
0 Views
View Answer
102) Torrie and Laura form a partnership in which they are equal partners.  Torrie contributes $100,000 cash.  Laura contributes $40,000 cash and a painting worth $60,000.  Laura purchased the painting three years ago for $45,000.  In two years the partnership sells the painting for $80,000. a.What is the partnership's basis in.
0 Views
View Answer
79) Explain the difference between a closed-fact and open-fact situation. 80) In all situations, tax considerations are of primary importance. Do you agree or disagree? Support your answer. 81) Describe the format of a client memo. 82) Explain how committee reports can be used in tax research. What do they indicate? 83) In 1998,.
0 Views
View Answer
1) Pass-through entities are taxed at only one level—the ownership level. 2) In a limited partnership, the limited partners are liable for partnership debts only to the extent of their investment in the partnership plus any amount they commit to contribute to the partnership if called upon. 3) Because a partnership is.
4 Views
View Answer
119) Atlantic Corporation, a calendar-year taxpayer, has $120,000 of accumulated E & P deficit as of January 1. Atlantic's current E & P is $40,000. The corporation makes a $50,000 distribution to its shareholders. Shareholders have stock basis of $60,000. What is the amount of Atlantic's E & P deficit.
0 Views
View Answer
61) Chocolat Inc. is a U.S. chocolate manufacturer.  Its domestic production income is $2,000,000. Taxable income before the domestic production deduction is $3,000,000. What is the amount of the production activities deduction? A) $270,000 B) $180,000 C) $90,000 D) $60,000 62) Chocolat Inc. is a U.S. chocolate manufacturer. Its domestic production income is $4,000,000. Taxable.
0 Views
View Answer
124) Additional capital may be obtained by a corporation by issuing debt securities or equity securities. What advantages result from issuing debt in the capital structure? 125) What factors are considered in determining whether a redemption will be treated as an exchange subject to capital gain or loss treatment? 126) Discuss the.
0 Views
View Answer
106) Marisa has a 75% interest in the MM Partnership. She sells the partnership a building used in her business for $150,000. Her adjusted basis of the building was $120,000. Marisa had used straight-line depreciation. What are the tax consequences to Marisa of this transaction? 107) Oliver receives a nonliquidating distribution.
0 Views
View Answer
51) Musketeer Corporation has the following income and expense items during the current year: Net income from operations (before dividend income) $ 120,000 Dividends from 10% owned corporations 240,000 The allowed dividends-received deduction is A) $ 120,000. B) $ 168,000. C) $192,000. D) $240,000. 52) Jenkins Corporation has the following income and expense items during the current year: Net loss from.
0 Views
View Answer
11) The partnership's assumption of a liability from a partner is treated as a cash distribution to the partner whose liability is assumed, which decreases his basis in the partnership. 12) When capital or Sec. 1231 assets are transferred to a partnership in exchange for a partnership interest qualifying under Sec..
0 Views
View Answer
91) Bryan Corporation, an S corporation since its organization, is owned entirely by Mr. Bryan. The corporation uses a calendar year as its taxable year. Mr. Bryan paid $120,000 for his Bryan stock when the corporation was formed on January 1 of this year. For this year, Bryan Corporation reported.
0 Views
View Answer
31) Corporations that are members of a brother-sister affiliated group may file a consolidated return if the proper election is made. 32) If certain requirements are met, Sec. 351 permits deferral of recognition of gain or loss on the transfer of property to a corporation solely in exchange for stock of.
1 Views
View Answer
31) The citation "Reg. Sec. 1.199-2" refers to A) the first regulation issued in 1999. B) the second regulation issued in 1999. C) a regulation that interprets Code Section 199. D) a regulation that can be found on page 199. 32) Which regulation deals with Code Section 165? A) Reg. Sec. 1.165-5 B) Reg. Sec. 165.183-5 C) Reg..
0 Views
View Answer
41) If a corporation distributes appreciated property to its shareholders, the corporation is treated as if it sold the property to the shareholders for its FMV immediately before the distribution, and the corporation will recognize any realized gain. 42) A corporation redeems 10 percent of the stock of each shareholder in.
0 Views
View Answer
104) Small Corporation had the following capital gains and losses during the current year: LTCG              $30,000 LTCL              $23,000 STCG              $ 9,000 STCL              $18,000 Taxable income, exclusive of the capital gains and losses above, is $68,000. a.How should the capital gains and losses be treated for the current year? b.What is the taxable income for the current year.
0 Views
View Answer
107) Compare and contrast proposed, temporary, and final regulations. 108) Compare and contrast "interpretative" and "statutory" regulations. 109) Explain the legislative reenactment doctrine. 110) In which courts may litigation dealing with tax matters begin? Discuss the factors that might be considered in deciding where to begin litigation. 111) Describe the appeals process in tax.
0 Views
View Answer
91) A calendar-year corporation has a $15,000 current E&P deficit and a $40,000 positive accumulated E&P balance. Also assume that shareholders of the corporation have a total basis in outstanding shares of $30,000. A $75,000 distribution is made to the shareholders on the last day of the year. The tax.
0 Views
View Answer